Oil Slides Below $60 A Barrel

oilderrick tbi

Reuters – Oil fell below $60 a barrel on Tuesday, pressured partly by a firmer U.S. dollar and expectations an OPEC meeting later this week would keep the producer group’s output unchanged.

U.S. oil prices for July delivery fell $1.91 from Friday’s close to $59.76 a barrel by 1000 GMT. London Brent crude was down $1.31 at $58.90. Oil has nearly doubled in price since December, buoyed partly by expectations of higher prices if the world economy recovers. U.S. crude has reached its highest in six months.

“Clearly, more fund money is now banking on higher oil prices down the road,” Edward Meir of broker MF Global said in a research note.

But he said the supply/demand outlook for oil was less promising in the near term.

“Particularly in the light of the likely OPEC decision to leave quotas unchanged. This leaves unaddressed the continuing build up in oil inventories, which could come back to haunt the cartel.”

OPEC’s most influential member Saudi Arabia said the group was likely to leave its output targets unchanged.

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